Reducing Carbon Emissions

Proposals to simplify CRC scheme will save businesses money and cut emissions

Proposals to simplify the Carbon Reduction Commitment Energy Efficiency Scheme (CRC) will deliver significant emissions reductions in large commercial and public sector organisations.

CRC is a key part of Scotland’s climate change policy. It is helping business across the country to reduce carbon emissions, contributing to our ambitious climate change targets by incentivising energy efficiency in the commercial and public sectors.

Businesses support the simplification of the scheme and will now have the opportunity to comment on the proposals. The proposed package is aimed at retaining the energy-saving and reputational benefits of the CRC, whilst reducing the bureaucracy of taking part.

The simplification proposals include:

• simplifying the qualification threshold;
• reducing the number of energy and fuel types covered by CRC from 29 to four;
• simplifying the CRC’s treatment of Climate Change Agreement and EU Emissions Trading System by removing energy supplies from the scheme;
• removing cap-and-trade in favour of simpler fixed-price sales.

Environment Minister Stewart Stevenson said:

“The CRC is stimulating the market for new low carbon goods and service industries, playing a key part in our efforts to tackle climate change and reduce emissions, laying the foundations for a low carbon economy.

“The proposals to simplify the CRC are in direct response to business concerns about the current scheme. The package will reduce the perceived complexity of the scheme, lighten the administrative burden and save businesses money.

“The benefits of the scheme are clear. The CRC is driving innovation and action in the business community, helping to reduce energy consumption and emissions, and making a significant contribution to our ambitious climate change targets.”